Deeming fiction: ‘Property is let’ cannot be ‘property actually let out’.

254
Deeming fiction: 'Property is let’ cannot be ‘property actually let out’.

Meaning and interpretation of the words ‘property is let’ cannot be ‘property actually let out’. Thus, if a property is held with an intention to let out in the relevant year coupled with efforts made for letting it out, it could be said that such property was a let out property and the same would fall within the purview of clause (c) of section 23(1).

Due to inherent defects assessee’s flat could not be let out and remained vacant. Hence, assessee claimed benefit of section 23(1)(c). AO held that property was let out at any point of time and, therefore, same was out of the purview of section 23(1)(c). 

Meaning and interpretation of the words ‘property is let’ cannot be ‘property actually let out’. Thus, if a property is held with an intention to let out in the relevant year coupled with efforts made for letting it out, it could be said that such property was a let out property and the same would fall within the purview of clause (c) of section 23(1).

Decision: In assessee’s favour.

IN THE ITAT, MUMBAI ‘G’ BENCH

SHAMIM YAHYA, A.M. & SANDEEP GOSAIN, J.M.

LEAVE A REPLY

Please enter your comment!
Please enter your name here